Some experts recommend buying silver now in order to provide a safe haven in an unstable economy. Individuals can buy silver coins and jewelry but they must then store these items somewhere. Once the display cases are full, these investors should consider alternatives like foreign silver stocks.
There are quite a few foreign silver stocks traded on the public markets and they represent everything from actual silver holdings to ownership in silver mining companies. Individuals can purchase stocks in foreign companies that engage in silver-related activities such as mining, processing, or refining. They can also buy foreign ETFs, which are exchange-traded funds that represent stocks from different countries. Individuals should do some online research or consult with a broker to find the best investments, but here are two that are worth exploring.
Rio Tinto is a popular large cap foreign silver mining stock traded on the U.S. markets. The company, based in the UK, finds, mines, and processes mineral resources including silver. It was founded in 1873 and has operations in Asia, Africa, Europe, South American, North American, and Australia. Rio Tinto has $23.17 billion market capitalization and an enterprise value of $41.52 billion.
The PowerShares DB Precious Metals Fund is one of the best rated exchange traded funds on the market. This fund is based on the Duetchse Bank Liquid Commodity Index, which is a rules-based index with futures contracts on both gold and silver. It had a total one year return of 22.49 percent and has provided a rate of return of 17.41 percent since its inception.
Rio Tinto and the PowerShares DB Precious Metals Fund are two foreign silver stocks that are currently performing well. Rio Tinto is an exploration and mining company based in the UK. The PowerShares DB Precious Metals Fund is comprised of gold and silver futures contracts. These examples highlight the diverse options for investing in foreign silver stock.